Dedicated IP vs. Shared IP: Which Should You Choose?

Anna Stankevičiūtė

Last updated on

 

2025-11-27

 

10 min read

 

The main differences between Dedicated IP addresses and Shared IP addresses lie in their exclusivity, security, and stability. A Dedicated IP address provides exclusive usage rights for a single user, ensuring a higher level of security and reliable connection performance, while a Shared IP address allows multiple users to share the same IP, resulting in lower security and stability.

Using proxy services is a common method to hide your identity online or access restricted content. Whether using free proxies or paid proxies, they can help you hide your real IP address.

●  This article will explore the following topics:

●  The definition, pros and cons, and use cases of Dedicated IP addresses

●  The definition, pros and cons, and use cases of Shared IP addresses

●  Dedicated IP addresses vs. Shared IP addresses

●  How to make a decision between the two?

What is an IP Address?

An IP address is the unique identifier for devices on a network. An IP (Internet Protocol) address acts like a ‘digital address’ for devices on the internet, used to identify and locate each machine connected to the network. It can be IPv4 (such as 192.0.2.1) or IPv6 (such as 2001:db8::1), responsible for transmitting data between devices. As stated in Cisco’s official technical documentation, “The deployment of IPv6 not only expands the address space but also enhances security and efficiency, forming the cornerstone of future network development.”

The functioning of IP involves DNS (Domain Name System): When you access a domain name (like thordata.com), DNS resolves that domain name to the corresponding IP address, allowing your browser to know which server to send the request to.

IP addresses are not only used for connecting to networks and transmitting web content but also play a key role in email delivery, network security, proxy services, and more. Choosing different types of IP can significantly impact control, security, stability, and other aspects, which forms the basis for our later discussion on Dedicated IP and Shared IP.

What is a Dedicated IP Address?

A dedicated IP address is a unique IP assigned to a single user or service. In other words, when you have a dedicated IP, no other websites or services are hosted on that IP; it belongs solely to you. This exclusivity means you have greater control over this address.

This type of IP often overlaps with the concept of a static IP: it remains unchanged, is more stable, and is easier to whitelist and authenticate. For certain businesses, such as email sending, SSL certificate installation, and proxy services, a dedicated IP is very useful because it can reduce the potential risks associated with sharing an IP with other users.

What is a Shared IP Address?

A shared IP address is an IP that is used by multiple users or services. Different websites, applications, or clients send and receive network traffic using the same IP address. Most traditional shared hosting or infrastructure operates this way.

The main advantage of this setup is cost-sharing: the fees for shared IPs are generally much lower than those for dedicated IPs, as multiple users share resources. Additionally, many modern hosting architectures (such as those using load balancers or CDNs) may allow multiple users to share an IP while still clearly dividing the underlying server resources.

If you want to learn more about each type of IP address, please click to visit:

●  Shared Proxy Services

●  Private Proxies Services

Pros and Cons of Dedicated IP Address

The main attraction of a Dedicated IP address lies in its exclusivity and reliability, suitable for users with high security and performance demands. It provides a dedicated network environment, allowing you to have complete control over the IP resources and avoid the uncertainties associated with sharing.

Pros of Dedicated IP Address:

●  Higher Security: Since only you use the IP, the risk of being implicated in malicious activities is reduced.

●  Better Stability: Dedicated IPs typically offer more consistent connection speeds, making them suitable for long-running applications.

●  Easy Management: You can customize configurations, such as setting up whitelists or dedicated SSL certificates, enhancing control flexibility.

●  Lower Ban Rates: The reputation of a Dedicated IP is solely maintained by you, reducing the chances of being banned due to others’ abuses.

While Dedicated IP addresses offer many advantages, they also have some drawbacks that need to be weighed. They may not be suitable for budget-conscious users due to their higher costs and complex configurations.

Cons of Dedicated IP Address:

●  Higher Costs: Dedicated IPs are generally more expensive than Shared IPs and may exceed the budget of individual users.

●  Potential Resource Waste: If you do not fully utilize the IP, it may lead to wasted resources and increased unnecessary expenses.

●  High Configuration Requirements: Setting up and maintaining a Dedicated IP requires a certain level of technical knowledge, which can be unfriendly for beginners.

●  Lower Flexibility: In scenarios that require quick IP switching, Dedicated IPs may not be as flexible as Shared IPs.

Use Cases for Dedicated IP Address

Dedicated IP addresses are suitable for scenarios that require high security and dedicated resources, providing stable connections and exclusive control.

Use Cases for Dedicated IP Address:

1. Business Website Hosting: Dedicated IP addresses ensure that the website has an independent IP reputation, avoiding associated risks in a shared environment. This is an ideal scenario for purchasing a Dedicated IP address.

2. Online Payment Processing: Dedicated IP addresses support the deployment of dedicated SSL certificates, enhancing transaction data encryption and user trust, making them suitable for high-security needs.

3. Data Scraping and Crawling: When selecting a proxy for web scraping, crawling, or automation tasks, buying a dedicated IP address can ensure that your requests come from a stable and predictable IP. This helps reduce the risk of being banned.

Real User Case: We are the operations team of a multinational fintech company. By using Thordata’s dedicated data center proxies to handle more than a million high-frequency trading requests daily, we successfully reduced API response times by 35% and achieved 99.99% service availability

——FinSecure Team, 2025.

Pros and Cons of Shared IP Address

For users on a budget or those needing basic anonymity features, a Shared IP address is an economical choice. It reduces costs by sharing resources, but this may sacrifice some performance and security.

Pros of Shared IP Address:

●  Low Cost: Shared IPs are usually much cheaper than Dedicated IPs, making them suitable for individuals or small projects.

●  Ease of Use: Most Shared IP services offer plug-and-play configurations, requiring no complex setup, allowing beginners to get started quickly.

●  Efficient Resource Utilization: By sharing, IP resources are reused by multiple users, reducing waste and supporting environmentally friendly practices.

●  Basic Anonymity Assurance: Shared IPs can hide your real IP address, providing basic privacy protection suitable for everyday browsing.

Cons of Dedicated IP Address:

●  Lower Security: Shared IPs may be used by other users for malicious activities, leading to the IP being blocked or its reputation damaged.

●  Unstable Performance: Because multiple users share the bandwidth, connection speeds may fluctuate, impacting user experience.

●  Higher Risk of Bans: If any user on a Shared IP violates rules, the entire IP may be banned by target websites.

●  Limited Control: You cannot customize IP settings, such as SSL certificates or whitelists, which restricts flexibility.

Use Cases for Shared IP Address

Shared IP addresses are suitable for cost-sensitive scenarios where high security is not a priority, providing basic anonymity features and resource sharing.

Use Cases for Shared IP Address:

1. Personal Blogs or Small Websites: If you’re just looking to set up a simple personal blog or showcase site, a shared IP is completely adequate.

2. Temporary Projects and Testing Environments: For development testing, short-term events, or experimental services, a shared IP is the quickest and most cost-effective way to get started.

3. Low-Frequency or Non-Critical Email Sending: If your email volume is low and the pressure on sending reputation isn’t high, a shared IP is typically sufficient.

4. Public API or Lightweight SaaS Services: For public services with low traffic that don’t handle sensitive tasks, a shared IP is adequate.

Shared vs Dedicated IP: Key Differences

The most critical difference between a shared IP and a dedicated IP lies in exclusivity. A dedicated IP address provides a single user with fully independent and exclusive usage rights, ensuring that the IP resources and connection channels are not shared with anyone else, whereas a shared IP address allows multiple users to use the same IP pool together, forming a resource-sharing environment.

Exclusivity further leads to significant differences in security risks and performance; a dedicated IP, due to its independent usage, avoids issues such as bans or slowdowns caused by other users’ misuse in a shared environment, while a shared IP may experience fluctuations due to multi-user resource competition.

We recommend that when you decide whether to purchase a dedicated IP address or a shared IP address, you prioritize the impact of exclusivity on long-term stability. For example, a dedicated IP can ensure that critical tasks are not disturbed, while a shared IP is more suitable for temporary or low-budget scenarios.

Detailed Comparison of Dedicated IP vs Shared IP

We can compare dedicated IPs and shared IPs across the following dimensions:

Control

Dedicated IPs give you complete control, including firewall settings, whitelists, and access policies. Shared IPs require resource sharing with other users, resulting in less control.

Security

Dedicated IPs reduce security vulnerabilities through exclusive use, making them suitable for handling sensitive data. In contrast, shared IPs may expose you to risks due to the actions of other users. If security is a priority, buying a dedicated IP can provide an extra layer of protection.

Banning Rate

Dedicated IPs have a lower banning rate since you maintain the IP’s reputation alone, while shared IPs have a higher banning rate and may be quickly blocked by target sites due to collective abuse.

Speed

Dedicated IPs generally provide more stable speeds since resources are exclusively yours, while shared IPs may experience speed fluctuations due to congestion from multiple users. 

Stability

Dedicated IP connections are more reliable, suitable for long-running services, whereas shared IPs may experience interruptions due to resource competition.

Target Websites

Dedicated IPs are more easily accepted by high-security sites, while shared IPs may face restrictions or bans from certain websites. For example, dedicated IPs are more reliable when accessing banking websites.

Price

Dedicated IPs have a higher cost but offer more value, whereas shared IPs are cost-effective, making them suitable for budget-conscious users. If you are looking for cheap proxies, shared IPs might be a good option.

Protocol Compatibility

Dedicated IPs support various protocols like HTTP/HTTPS, while shared IPs may be limited to basic protocols.

Reputation Management and Compliance

Dedicated IPs are easier to manage in terms of reputation, whitelisting, and compliance, whereas shared IPs may complicate reputation management due to mixed user behavior.

The main criteria we examined encompass multiple aspects from performance to cost, helping assess which type of IP is more suitable for your needs. Shared IPs, especially those without reliable reputation guarantees like free proxies, are more prone to bans. For long-term, stable, and frequent access to target sites, you can buy any proxy type from Thordata, ensuring absolute peace of mind.

Comparison Table of Dedicated IP and Shared IP

Dedicated vs Shared IP: A Decision Guide

When deciding between a dedicated IP and a shared IP, consider the following questions:

●  Is your business highly dependent on the stability and exclusivity of the IP address?

●  Are you sending a large volume of emails and aiming to build a good email reputation?

●  Are you using proxies for web scraping, and is the target site sensitive to being blocked?

●  Does your budget allow for additional costs for higher quality connections?

●  Do you need strict control over access policies, firewalls, or whitelists?

●  Is your project short-term and experimental or long-term and operational?

●  Is your service highly sensitive to performance fluctuations?

●  Do you have scaling needs that may require a large number of IPs in the future?

●  Are you willing to take on the technical complexities of IP management and operation?

By answering these questions, you can clearly identify which type of IP is more suitable for you. For example, if you need to buy proxies for enterprise-level applications, a dedicated IP may be more appropriate; whereas if you are using them occasionally, a shared IP can save costs. In summary, the decision between shared and dedicated IP should be based on actual needs rather than following trends blindly.

Impact of IP Address Types on SEO

Answer: The type of IP address your website uses does not have a direct impact on SEO rankings.

Google emphasizes that they evaluate website content and user experience, not your IP. As Google’s John Mueller said, “Using a shared IP address is perfectly fine and has no negative effect on Google Search.”

In fact, as summarized by OnCrawl, Google currently does not use IP addresses for geo-targeting, and IP is not a key factor for local SEO.

Additionally, Kinsta also points out in their blog that in most cases, you do not need a dedicated IP, as it does not provide a noticeable SEO boost.

Many SEO experts believe that the factors that truly affect rankings are website performance, content quality, user experience, and link strategy. Even when using a shared IP, as long as your content is high-quality, well-structured, and loads quickly, you can achieve good SEO performance.

Conclusion

In conclusion, there is no one-size-fits-all solution when choosing between dedicated IP and shared IP. The key is to understand the fundamental differences: dedicated IPs emphasize control, security, and stability, while shared IPs focus on cost, flexibility, and convenience.

For projects that have strict requirements for email reputation, crawler stability, or access control, it is advisable to consider purchasing a dedicated IP or dedicated proxies. Conversely, for budget-sensitive, small projects or testing purposes, shared IPs are a very effective and economical choice.

If you are unsure which type of proxy is suitable for your business or project, please contact us at support@thordata.com or via online chat, and we will help you match the right option and make the final decision.

To learn more about different proxies, you can read our blog, including articles like ISP Proxies vs. Residential Proxies and Datacenter Proxies vs. Residential Proxies.

 

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About the author

Anna Stankevičiūtė

Content Specialist

Anna is a content specialist who thrives on bringing ideas to life through engaging and impactful storytelling. Passionate about digital trends, she specializes in transforming complex concepts into content that resonates with diverse audiences. Beyond her work, Anna loves exploring new creative passions and keeping pace with the evolving digital landscape.

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